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Salary versus Risk - What's the Weight of Your Job?

We analyzed Bureau of Labor Statistics (BLS) data from 2012 and identified four industries with a remarkably high risk of injury and a relatively low rate of return in terms of wages.

The four industries – transportation, manufacturing, constructing and farming – combined to account for 40,700 of the state’s total recordable cases of worker injury or illness (41 percent) and 70 percent of the state’s 101 total fatalities (70 percent) in 2012.

In particular, the state’s farming industry had a fatal injury rate (17.7 fatal injuries per 100,000 full-time workers) that was more than five times higher than the national rate across all industries (3.2). At the same time, workers in those four industries in Georgia earned well below the national and state average hourly and yearly wage levels. For example, the average hourly wage for construction workers in Georgia was $18.33 per hour, or $3.68 lower than the national average and $2.49 below the state average across all industries.

If a worker in one of these high-risk industries suffers an injury, workers’ compensation can provide limited relief. Workers may also be entitled to seek Social Security Disability Insurance (SSDI) benefits or pursue personal injury damages against a negligent non-employer.

A long-term solution to this issue may be emphasized education and training for more “low risk, high reward” jobs such as those found in technology. Hasner Law PC has years of experience dealing with workers' compensation cases in Atlanta and Savannah.

Identifying ‘High-Risk’ Industries Based on Total Non-Fatal and Fatal Occupational Injuries and Illnesses

For this study, we analyzed wage and injury data from the Bureau of Labor Statistics (BLS) from the year 2012.

Our goal was to identify industries that present the highest level of injury risk to workers by looking at the total number of cases of non-fatal and fatal occupational injuries and illnesses over the course of a year.

NATIONAL

Georgia

Based on these statistics, it is reasonable to conclude that jobs within these four industries can be classified as “high-risk” occupations.

Charts

Analyzing Non-Fatal and Fatal Incident Rates in Four ‘High-Risk’ Industries

We decided to take a closer look at these four industries and analyze how their non-fatal and fatal injury rates compared to national and state rates for all occupations. Again, we studied BLS data from 2012.

With only a few exceptions, the incident rates in these industries were above the national and state rates for all occupations – and, in some cases, significantly higher.

2012 Fatal Injury and Illness Rates

As the chart to the right shows, three industries in Georgia – farming, transportation and construction – had fatality rates above the 3.2 national fatality rate for “all industries.”

In fact, the fatality rate in the Georgia farming industry was nearly five times the national “all industries” rate, while transportation had more than double the national rate.

Manufacturing was the only Georgia industry with a rate below the national “all industries” rate. However, at the same time, the state’s fatal incident rate in that industry (2.4) was higher than the national rate for the same category (2.1).

INDUSTRY

NATIONAL

GEORGIA

Farming

21.2

17.7

Manufacturing

2.1

2.4

Transportation

13.3

8.2

Construction

9.5

5.8

All Industries

3.2

2.5

*Incidence rates represent the number of fatal injuries per 100,000 full-time workers

Weighing Returns Against Injury Risk

Having identified four “high-risk” industries, we turned to an analysis of the wages within those industries, using BLS wage estimate data from 2012. It is important to note that the BLS categorizes wage estimate information by “occupation” and not by “industry.” Thus, we used the closest match between injury and wage categories as follows:

BLS Industry Category (Injury Data)

BLS Occupational Category (Wage Data)

Transportation

Transportation and Material Moving Occupations

Manufacturing

Production Occupations

Construction

Construction and Extraction Occupations

Farming

Farming, Fishing, and Forestry Occupations

According to the BLS, the average hourly wage across all occupations in 2012 was $22.01, while the average yearly salary was $45,790. In Georgia, the average hourly wage across all occupations during the same year was $20.82, while the average yearly salary was $43,310.

As you can see in this chart, the four “high-risk” industries in Georgia that we identified each fell below both state and national hourly and yearly wage levels.

These numbers indicate that workers face a high level of risk in those four industries in exchange for a relatively low reward, or wages that fail to meet national and state averages.

Workers Compensation: GA Benefits and Limitations

Georgia, like other states, has a workers’ compensation system in place. The system provides benefits – and thus some relief – to eligible workers who suffer job-related injuries or illnesses. It also provides benefits to eligible surviving family members of workers who die from work-related injuries or occupational diseases.

It is important to note that workers’ compensation coverage does not extend to independent contractors or to farm laborers. However, in many cases, workers who have been deemed “independent contractors” may actually be treated as employees (and eligible for benefits) by the Georgia State Board of Workers’ Compensation. Also, employers may elect to provide workers’ compensation benefits to farm laborers).

A key aspect of the workers’ compensation system is that it provides benefits without the need for the injured or ill worker to prove the fault of the employer. The benefits available to injured and ill workers through Georgia’s workers’ compensation system include medical benefits, lost-wage benefits and vocational rehabilitation services.

However, each category of benefits has limits. Consider the following: (Click on the icons to learn more)

Medical Benefits

Total Disability Benefits

Partial Disability Benefits

Permanent Partial Disability

Death Benefits

Rehabilitation Benefits

Clearly, these benefits – although limited – can play an important role in the life of an injured or ill worker and his or her family members. However, in many cases, they may not be enough to make up for the risks that many workers face in dangerous jobs.

Consider, for example, a worker in the construction industry in Georgia. We will use the BLS hourly wage estimates from 2012 and assume the worker earns $733.20 per week ($18.33 per hour x 40 hours).

If the worker suffered an injury or illness that prevented the worker from being able to work at all, the worker could receive total disability benefits through the workers’ compensation system amounting to roughly $488.80 per week, or $1,955.20 per month.

Now, consider the cost of living. According to an article on SmartAsset.com, the average cost of rent for a two-bedroom apartment in Georgia is $1,030 per month, while the average cost of utilities is $134.14.

Thus, roughly 60 percent of what our injured construction worker would receive in benefits would go towards simply keeping a roof over his or her head. Food, transportation, clothing and other expenses (including those arising from support of children) could quickly end up placing the worker in debt.

Fortunately, many injured or ill workers may also qualify for reduced Social Security Disability Insurance (SSDI) benefits. In some cases, a worker who is injured by a negligent non-employer, or “third party,” may seek compensation through a personal injury claim.

TRAINING FOR A BRIGHTER FUTURE?

As the above indicates, workers in “high risk, low reward” industries such as farming, manufacturing, construction and transportation can face dire consequences if they suffer a work-related injury or illness.

Workers’ compensation can provide much-needed assistance to these workers, but in many cases, the benefits may not be enough to keep a worker from struggling to make ends meet. It is important to focus on providing education and training opportunities for more “low risk, high reward” occupations such as those in technology sector.

For instance, according to BLS data, a “computer user support specialist” who provides technical assistance to computer users (typically in an office setting) earns, on average, $24.10 per hour and $50,130 per year.

At the same time, as a worker in the “professional, scientific, and technical services” industry, such a worker would face an incident rate risk of only 0.3 per 100 full-time workers. Increased support for our community college system and vocational rehabilitation services may ultimately provide a route for acquiring the skills and knowledge to acquire such jobs.

Medical Benefits

A worker can receive full payment of all medical expenses and all treatment-related travel expenses arising from the work injury or illness.

LIMITS:

The worker must be treated by an approved medical care provider. Additionally, medical benefits end after 400 weeks if the injury or illness arose after July 1, 2013, unless it is “catastrophic,” meaning a condition such as traumatic brain injury, loss of limb, severe burns or paralysis.

Total Disability Benefits

A worker can receive weekly income benefits if a doctor’s orders prevent the worker from working at all due to the injury or illness.

LIMITS:

The benefits are limited to 2/3 of the worker’s average weekly earnings and can be no more than $575.00 per week if the injury occurred after July 1, 2016 (a cap which changes each year). Also, the benefits are limited to 400 weeks unless the injury is “catastrophic.”

NOTE:

If a worker loses an arm, leg or other body part or suffers loss of sight or hearing, the worker may receive benefits based on an amount set by law.

Partial Disability Benefits

These benefits replace wages lost when a doctor places a worker on light duty, allowing the worker to return to a job that pays less than what the worker earned before.

LIMITS:

The benefits are limited to 2/3 of the difference between what the worker earns now and earned before (capped at $383.00 per week if the condition arose on or after July 1, 2016). Also, the benefits cease after 350 weeks.

Permanent Partial Disability

A worker may receive benefits based on a doctor’s rating, which indicates the percentage of the disability.

LIMITS:

The percentage arrived at by the doctor is multiplied by a number of weeks established by law for the specific body part. The weeks are then multiplied by the workers’ total disability benefits amount (and thus subject to those same limits).

Death Benefits

These benefits provide $7,500 in funeral and burial expenses and weekly income benefits to the deceased worker’s surviving dependents (spouse and dependent children).

LIMITS:

These benefits are capped at 2/3 of the deceased worker’s average weekly earnings (or $575.00 if the death occurred on or after July 1, 2016). They also stop after 400 weeks.

Rehabilitation Benefits

A worker who cannot return to his or her job may receive assistance in getting a new job or training for a different line of work.

LIMITS:

Only workers with “catastrophic” injuries are eligible for this type of assistance (although employers may elect to provide this benefit to workers with non-catastrophic injuries).

NOTE:

If a worker suffered a “catastrophic” injury, the worker may receive assistance in obtaining a new job or being trained for a new line of work.